Amazon is dropping Venmo as a payment option next month, the PayPal-owned mobile payment service has announced Website. The official announcement comes as Amazon alerted users last night via email that Venmo will no longer be accepted on Amazon.com starting January 10, 2024. However, Amazon will still accept Venmo debit and credit cards.
“Due to recent changes, Venmo can no longer be added as a payment method,” reads Venmo’s announcement on its website. “Venmo will remain available to users who currently have it enabled in their Amazon wallet until 10/10/24. “
PayPal spokesman Joshua Criscoe told TechCrunch in an email that “Venmo and Amazon have agreed to disable Venmo as a payment option for paying on Amazon at this time. Customers can continue to add their Venmo debit or credit card to their Venmo wallet to pay at Amazon. We have a strong relationship with Amazon and look forward to continuing to build on it.”
Since the news was announced, PayPal shares have fallen about 2%.
The reversal comes a little more than a year after Amazon announced it would begin allowing customers to make payments through Venmo on its site. At the time, the online retail giant said it wanted to offer customers payment options that were convenient and easy to use.
For Venmo, the deal meant the company could move beyond P2P payments and grow its revenue through transaction fees through retail purchases. Although the integration didn’t go live until October 2022, PayPal announced that it had reached an agreement with Amazon back in 2021 which would allow users to pay with Venmo. Then it took a year to start the integration.
Amazon spokeswoman Alyssa Bronikowski told TechCrunch in an email that “customers can still use nearly a dozen other payment options, including debit cards, credit cards, checking accounts or installments to pay for their orders.” Amazon offers different payment methods from networks such as Visa, Mastercard, American Express, JCB, Discover and more.
